OpenAI’s $100 Billion Nvidia Deal Structured as GPU Lease Agreement

OpenAI has negotiated a landmark $100 billion agreement with Nvidia, structured as phased cash payments rather than an upfront hardware purchase. The unconventional arrangement shifts financial risk to the chipmaker while ensuring gradual access to critical AI infrastructure.

The first AI data center in Abilene, Texas will commence operations in late 2026, triggering initial payments. Nvidia CEO Jensen Huang called the deal "monumental in size," noting that a single gigawatt-scale facility requires approximately $50 billion in total investment - with $35 billion allocated specifically for Nvidia processors.

OpenAI maintains financial flexibility through a leasing model that spreads costs across the five-year operational lifespan of each GPU cluster. An immediate $10 billion infusion will fund initial deployments, with the majority directed toward Nvidia hardware purchases rather than operational expenses.